Forex trading plan for Jan. 27

The opposition anti-austerity party Syriza has won Greek election. Syriza gets 149 seats in Parliament (out of 151 needed for majority) and has made an alliance with the Independent party to gain the majority needed to take over from New Democracy/Pasok. The market will be now looking for every piece of news about Greece’s negotiations with the creditors, but we don’t expect any fatal announcements in the coming sessions. This means that EUR/USD has room for correction/consolidation.

EUR/USD rose to 1.1260 on Monday closing the opening gap after falling to as low as 1.1097. Resistance is at 1.1305 and 1.1370. Support is at 1.1000.

GBP/USD is trading below the previous support at 1.5050 and is vulnerable for a decline to 2013 low in the 1.4813/00 area where it should find a good support. Watch the UK GDP data tomorrow at 09:30 GMT.

USD/JPY is fluctuating around 118.00. Support is located at 117.25, 116.90 and 115.85. On Tuesday the US will release several important pieces of data, and the forecasts are quite positive. A break above 118.90 will open the way to 120.00. The pair’s ability to rise above the 120 handle will depend on the outcome of the Fed’s meeting on Wednesday.